Company Overview
SBI Cards and Payment Services Limited, a Non-Banking Financial Company Middle Layer (NBFC-ML) registered with RBI and majority-owned by State Bank of India (68.58% stake), reported strong financial performance for FY 2025-26 alongside significant regulatory compliance updates.
Financial Performance Highlights
SBI Cards delivered robust results with net profit increasing 13% YoY to ₹2,167 crore on total income of ₹20,708 crore (up 11%). Key operational metrics showed cards-in-force growing 6% to 2.21 crore and retail spends increasing 15% to ₹3,53,764 crore. Asset quality improved significantly with Gross NPA reducing to 2.41% (from 3.08%) and Net NPA declining to 1.04% (from 1.46%). The company maintained strong capital adequacy with CRAR at 25.5% and declared an interim dividend of ₹2.50 per share.
AGM and Related Party Transactions
The company issued notice for its 28th Annual General Meeting scheduled for August 31, 2026, to be held virtually. Shareholders will confirm the interim dividend and approve material related party transactions with State Bank of India exceeding ₹28,000 crore for FY 2026-27. These transactions represent 135.22% of the company's annual turnover and include banking services, credit facilities, royalty payments, and other operational arrangements. The Audit Committee has granted approval, confirming transactions are at arm's length and in ordinary course of business.
Regulatory Compliance and Disclosures
SBI Cards maintained AAA/Stable credit ratings for debt instruments and A1+ for short-term ratings with no revisions during FY26. The company reported Liquidity Coverage Ratio of 132.8% for Q4 FY26, well above the regulatory minimum, with High Quality Liquid Assets of ₹6,997 crore. Extensive RBI-mandated disclosures covered asset-liability maturity, sectoral exposure, and customer complaints. The company resolved 160,148 of 160,221 complaints received during the year.
Governance and Management
Board composition includes Chairman Challa Sreenivasulu Setty and Managing Director & CEO Salila Pande (appointed April 1, 2025). Corporate governance disclosures confirm compliance with SEBI regulations, with 2 sexual harassment cases resolved during the year. Shareholding pattern shows 97.08% of shares held by 597 shareholders with 99.26% dematerialization rate as of March 31, 2026.
Outlook and Prospects
The company sees significant growth potential in India's payment industry given low credit card penetration. Focus areas include leveraging technology, customer engagement, and RuPay cards integration with UPI, which saw spends grow over 126% from FY25 to FY26. SBI Cards targets higher market share in spends and card issuance while ensuring profitable growth and maintaining regulatory compliance across all operations.